The real estate boom in recent decades has everyone making a beeline towards investing in real estate. But despite the advent of RERA, real estate dealings in India can be prone to manipulation, and you still hear of cases of frauds, misrepresentation, and forgery.
“I thought I was being meticulous and checked all the documents. But I was still duped and given a property that was already in dispute,” says Mukund Sharma who is currently fighting a legal battle for that property in Pune. What options does Mukund have now?
Mutual settlement
The Indian judiciary is already saddled with thousands of cases involving real estate. A resolution, hence, does take time and involves spending a lot of money in the form of lawyers and other fees. Mutual settlement of a dispute might save Mukund years and years of hassle.
Approach the judiciary
If both parties do not agree to a mutual settlement, the only option is to file a case and approach the judiciary. Since Mukund was unable to reach an agreement, he is now going to have to settle his case in court. However, he must be aware of the different types of cases:
Failure to honour an agreement
This is one of the most classic cases of fraud.
For example, a buyer has paid an advance for a property, and the developer has accepted the same. But the developer or the owner dishonours the agreement and sells the property to another person.
What should the first buyer do in this instance?
According to Indian law, once a person enters into an agreement and accepts an advance for the same, he has to honour the commitment. In this case, the first person who bought the property can file a police complaint and file a suit against the seller.
For cases of this nature, the court generally issues a stay order. It is also good practice to send a notice to the other buyer informing him of your position.
Property that was taken over fraudulently
This is generally the case involving fraudulent signatures or misrepresentation.
Often, people are duped into a transfer of their property without their knowledge. This might be true in cases of seniors staying alone or in cases of ancestral property without proper documentation of ownership. In these cases too, a case of fraud and misrepresentation should be filed in addition to petitioning the court to declare the subsequent sale as invalid.
Misrepresentation from seller’s kin
Cases of this nature have become quite common of late. A sale would have taken place in the right order and a few months/years later, some individuals claiming to be the relatives/legal heirs of the seller file a suit against the buyer. In this case, it is good to get the other seller as a party to your case.
Also, the Sale Deed and other documents form the basis of your case.
To avoid landing up at the doors of the court with cases like these, it is always good to get the property papers verified by a lawyer and carry out a thorough check from all angles before buying a property.
I am local resident of indore . I had ancestral property it has been fraudulently taken from me through fake and hyposthical documents , I had been suffer from this , constantly apeal , inform , complaint to various govt authority and departments at the same time legal action also taken but still no effect and malpractices are continues . Plz let me know future course of action so that I will ensure safety and security of my legal ancestral rights and property.
Dear Sir,
myself Manish Singh, i have been suffered with the big problem, sir please help me out from this situation
i went to buy a flat for 32 lakhs but before buy i have given them 14 lakhs in advanve after that i went for the final step regestry of the house then i found that they dont have the proper documentation that house was not on their name. then after that i said i dont want this house any more and please you return my money back, then they said we will not return your money. sir please help me out please suggest me for this situation
regards
ManishSingh
7045536610
I m an NRI and from goa and I had bought a property paying half amount of the property from estate agent it’s been 2 years since then I am asking the agent for transfer of property in my name but he is giving excuses should I approach court.
Dear Mackron, please contact your lawyer and proceed further.
Hello,
I am reaching out to you for legal opinion on real estate and loan frauds.
*My Query :*
An owner A of a property holds a land with a S No. 123.
The owner of the property has mortgaged the land via a registered sale deed with a Bank and borrowed a huge loan against the said property.
On the 7/12 extracts no charge creation of the Bank has existed right from the date of mortgage deed till 2020.
There was no paper notice etc published by the owner or buyer published in the newspaper.
Now the owner of the property has sold the same to a buyer.
The registered sale deed executed for the said transaction states there is no charge or any kind of loans existing on the property.
Whereas the 7/12 extracts attached by the owner with the registered sale deed, clearly states there is a huge amount of loan against the said property.
There is no Bank NOC certificate attached with the registered sale deed, saying whether they have no objection or no charge or no dues existing against the property.
Later I filed a RTI complaint to the bank asking them whether they have given the accused official permission for Sale of property, have they given him the NOC, Are they aware of the transaction, furnish details of repayment schedule and bank statement since 2017 by the accused against the loan or charge on the property.
3 weeks later there was a reply where Bank upfront denied to reply to my RTI complaint saying the bank is not bound to reply on my RTI.
My query is even after a charge already existing on the property, is it legal to register the sale deed and is the registered sale deed legally acceptable. Does this not come under a crime and a serious fraud??
The incidence raises doubt and suspicion about the transaction and malafide intentions of the Owner of property, Buyer of Property, Bank where property has been mortgaged and Sub Registrars Office.
Under which sections of IPC can we register a case and file a FIR against the owner who is the seller, the buyer and Sub Registrars Office.
Why has the bank been silent and why didn’t they question the transaction?
*There was a cheque of Rs,90 Lakhs attached to the sale deed of the property by the buyer B on 1st December. Whereas my cheques sent for clearing to the Bank were returned back with a comment insufficient funds. Does this mean the cheque for closing the transaction was faque?? Cheque was just a fraud to complete the transaction. Bank statement of the buyer who bought the property will reveal the truth.*
*I need your help & inputs and legal opinion and very clear clauses to implicate the Buyer, the accused, the bank, the sub registrars office.*
*To whom should I appraise the matter RBI? Finance Intelligence Unit? IGR?? Collector?? Director Land Records, Police??? If so will need to file individual complaints to every single agency for all rules have been broken to facilitate the deal & may be take care of the vested interests of the Chairman.*
Thanks & Regards,
Manoj Gilda
Thanks for the information you have provided through your blog.